Mueller Affordable Homes homeowners together with affordable homes advocates and their attorney, has appeared before the Travis Central Appraisal District Board of Directors to seek clarifications about the recent appraisal spike to affordable homes in northeast Austin development.
The Austin Chronicle reported that 25 percent of Mueller homes are reserved at "affordable" prices for qualified buyers who earn less than 80 percent of the median family income. This was regarded by the City of Austin and instigated by the Catellus Development Corp. and the nonprofit Mueller Foundation. The resale value of the affordable housing stock is restricted to an annual appreciation of 2 percent. TCAD appraisers acknowledged the 2 percent ceiling from 2007 until last year.
According to the reports, about 50 of the affordable homes were sharply appraised at full market rates, with some more than 100 percent above their previous appraisals. For example, homes that were formerly appraised at $170,000 were suddenly issued appraisals more than $325,000.
"Under these rising appraisals," homeowner Janeka Rector told the board, "my home will become unaffordable within five years."
In a report by Community Impact, Patti Summerville, executive director of the Mueller Foundation, said that "among the neighborhood's 290 affordable home owners, only 100 are safe from being priced out based on the 2015 property assessments, and 50 of the remaining homeowners will experience substantial increase in property tax that they may be [forced] to sell or foreclosed upon."
The two-hour discussion between the affordable homes advocates and TCAD was inconclusive. While the board members of TCAD appeared to be sympathetic with the advocates, they pointed out and questioned the design of the affordable homes program and the release of 14 affordable homes to be sold at market-rates. The "excess" income (above the 2 percent annual rate) goes back to the Foundation to fund additional affordable housing stock.
According to TCAD's attorney, Judith Hargrove, the higher assessed values being seen by the affordable home owners are the result of the recent reselling of affordable homes at market-price.
"TCAD is being blamed for a situation that the Mueller Foundation created in the way it established this program," Hargrove said.
